Indemnity premiums still at outrageous levels
AMA President, Dr Bill Glasson, said today that all the good work by the Federal and most State and Territory Governments on solving the medical indemnity crisis could unravel if medical indemnity premiums continued to rise.
Dr Glasson said some senior obstetricians this week were hit with bills for $140,000 for insurance for the next twelve months - a financial burden that brings into question their ability to continue to practise obstetrics.
"A lot has been achieved to provide doctors with more security about their indemnity cover, but affordability is now the main concern," Dr Glasson said.
"Most Medical Defence Organisations (MDOs) - other than UMP - are now in the process of issuing their premium notices to doctors. The MDOs have to work out their premium structures for the various specialties in the context of the government's regulatory framework.
"If the premiums set by one MDO are any guide, then the reform process has failed to provide any downward pressure on premiums. Worse, for some doctors the premiums have gone up.
"A NSW obstetrician who left UMP last year has been hit with a premium of $140,000 by his new MDO. This is some $40,000 more than obstetricians who remained with UMP are paying.
"On top of the $140,000, the obstetrician will be required to pay the yet-to-be-determined IBNR levy that applies to obstetricians who were members of UMP at the time it went into voluntary liquidation.
"This is not affordable. This is nonsense. The doctor is under unnecessary financial pressure. Patients lose access to a skilled professional. The community faces fewer obstetric services. There are no winners in this situation.
"After all the work that has gone into fixing this problem, you would think we would finally be seeing relief from outrageous indemnity costs.
"A NSW orthopaedic surgeon has been advised of a 20 per cent increase in his premium by UMP. He is not entitled to any high premium government subsidy. He, too, will have to pay an additional amount to cover the IBNR levy.
"There must be more transparency in how premiums are set. Doctors need this information to plan ahead for their patients. But most MDOs regard this information as 'commercial in confidence', making it difficult for the AMA to provide the information our members require.
"If premiums do not start to fall we could all be back at square one on medical indemnity," Dr Glasson said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761